I've dedicated over four decades to my passion for athlete representation and being an agent of change. My client roster has boasted a multitude of premier athletes and “Hall of Famers” spanning over multiple professional sports, including the likes of Steve Young, Troy Aikman, Warren Moon, Bruce Smith, Thurman Thomas, Ben Roethlisberger, Erick Karros, Dusty Baker, John Starks, Lennox Lewis, & Oscar De la Hoya. I've pioneered the convergence of the sports and entertainment industries and is credited as the real life inspiration for the lead character from the film “Jerry Maguire.” During my time of more than 40 years in the industry, I've represented the #1 pick in the NFL draft a record setting 8 times and has negotiated well over three billion dollars in contract deals for his clients. My passion for helping others has always been a cornerstone of my practice as my athletes retrace their roots to the college and high school levels and dedicate themselves to aiding those in need.

How To Be A Great Sports Agent (Part 8) -- The Evolution of NFL Rookie Contracts

The most dramatic change in the business of representing rookie NFL players has been the imposition of the 2011 Collective Bargaining Agreement of a rookie salary cap. This is a hard cap, with little flexibility, and has removed the creativity and art from the process. The contracts for 90% of the rookies are slotted. My 19-year-old daughter Katie could negotiate effectively for a player by simply waiting until the contiguous signings establish the slot. Each team has an allocation of cap dollars, and likewise each round of the draft has narrow allocations.

It was not always this way. Prior to 1993, there were no guidelines for rookie contracts. While both agents and general managers would refer to “the market”, it was possible to achieve dramatically different results with a persuasive argument or leverage. Disputes between players and teams often resulted in long holdouts. A team holds exclusive rights to a draftee until the following draft, and players cannot participate in training camp until they have agreed to a contract. Quarterback Kelly Stouffer, drafted by the St. Louis Cardinals, actually sat out the entire 1987 season rather than sign.

The first issue was always the length of the contract. Teams demanded five or six-year contracts in order to control the ability of the player to receive veteran level pay. The sport did not have injury or skill guarantees for each individual year as the NBA and MLB did. It did, however, have a tradition of paying signing bonuses with most of the money paid at the time of signing. This in turn created resentment from veterans who felt that the bonuses took money out of their own pockets. They argued that proven, productive starters ought to receive the lion’s share of available compensation rather than rookies, many of whom were major flops. This led to the inclusion, in the 1993 Collective Bargaining Agreement, of a rookie wage scale. Even though we benefited from the old system, it is hard to argue against a system which makes veteran salaries and benefits the first priority.

I have represented 63 first round draft picks over the last 40 years and the very first pick in the first round 8 separate times. Fortunately, we represented the first pick in the draft in the first three years of this new CBA. The intent of the wage scale was different than how it was written and our lawyers found numerous loopholes. We were able to introduce unique contract provisions like “voidable years,” “void buy-back,” splitting bonuses with second-year option clauses, and escalator clauses.

These creative contract provisions allowed players to continue receiving large bonuses while getting paid more like top veterans before their first contract expired. All of these innovations are now outlawed under the new CBA. Even incentive clauses have become obsolete in new contracts because they are generally counted as money received by a player, even if he does not actually earn them.

The largest contracts have always been at the top of the first round, with a rapid drop-off in the later picks. This has continued in the current system. Quarterback Sam Bradford was the first pick in the 2010 Draft and he received $50 million in guaranteed money. Defensive End Jadaveon Clowney received $22 million guaranteed as the first pick this year. The 32nd selection in this years’ draft, quarterback Teddy Bridgewater, had $5.5 million guaranteed.

Each rookie draftee must sign a four-year contract. After three years that contract can be extended, which just occurred when quarterback Colin Kaepernick signed a new extended deal with his team the 49ers. A player drafted by a team in the first round can have the team option a fifth year. That fifth-year salary is determined by the average of the top 10 players at his position for picks 1-10. Picks 11-32 receive the average of the top 25 players.

Players picked in the third round or below are eligible for a proven performance incentive that inflates the salary for year four. The agent is not involved in the fifth-year salary determination for the first round player or the enhanced fourth year for rounds 3-7–they are done by a pre-established formula.

Agents can still play a central role in assisting a prospective draftee as he navigates the second season of scouting. Proper training to accentuate strengths, prudent decision making in choosing where to showcase skills, and preparation for the scouting events are all critical. An agent can help mentor a rookie through the challenging first year. We ask that our players retrace their roots and establish charitable and community programs so they can be role models. Doing the proper prior planning for their second career is essential. Later veteran negotiation has major latitude and negotiability and the agent’s role is more critical. But in the rookie negotiation, not so much.

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